Before heading out to buy your next new car, consider taking a few steps to make the car buying process easier and less stressful.† Iím talking about getting pre-approved for your car loan before you shop.† Here are a few advantages for taking this step first:

Pre approval helps you avoid that time consuming, stressful, and generally unpleasant process of waiting for approval at the dealership and haggling the payment terms, APR, and down payment.† It can actually take several hours at the dealership to work out the financing and many dealerships make you feel like youíre being ganged up on by adding several associates to assist in the process.† When you get pre-approved for your auto loan, you can completely avoid this last step at the dealership and instead of sitting down to work out the financing, you can simply hand them a check or make a quick phone call to your lender and itís done.† You drive away with your car and save yourself a few hours.

Keeps you within your budget.† It can be tempting at the dealership to buy a car that is over your budget.† Salespeople are skilled and the cars can look and feel very nice.† It is easy to get in over your head.† However, when you take the step to get pre-approved for your loan, you may head into the dealership with a different attitude.† Knowing you are already approved for a $25,000 loan may very well keep you from purchasing a $35,000 or more car.†

More freedom to negotiate, or not.† When you know you only have a certain amount to spend, the amount youíve been pre-approved for, it gives you the freedom to negotiate.† For example, if youíve been pre-approved for $18,000 and you have three different cars on your list that are within that budget, why not head to the one that is at the very top of your budget and see what you can do.† It is entirely possible that you could talk a sales person down from a sticker price of $26,000 to your pre-approved $18,000.† There are several reasons for this, one is that it is easier for you to stick to your guns.† You really do only have $18,000 to spend and if they donít come down, walking away is your only option.† The other reason is that it gives you the courage to negotiate.† What do you have to lose? †Makes shopping for a car less stressful.† Shopping for a car can be very stressful for many people.† There are tons of options in automobiles, features, and pricing and there are also numerous financing options.† Getting pre-approved, helps you narrow your options.† You will know what you have to spend which certainly helps eliminate some cars.† It also eliminates your financing options.†

Pre-approval for your next auto loan is a helpful step in keeping your next car purchase on track and making it as easy as possible.† There are a number of pre-approval options both online and with your local bank or credit union.† Consider doing a bit of research before you buy your next car, and getting pre-approved before you visit the dealership.